Can You Transfer a Credit Limit to Another Card?

A credit limit transfer allows a cardholder to reallocate a portion of their available credit from one credit card to another. This process shifts borrowing power between accounts without increasing or decreasing the cardholder’s total credit across all their cards with a specific issuer. This action differs from a credit limit increase, as it involves an internal adjustment of existing credit rather than an extension of new credit.

Eligibility for Credit Limit Transfers

Credit limit transfers are almost exclusively permissible between credit cards issued by the same bank or financial institution. This limitation arises because each issuer manages its own risk assessment and internal credit allocation policies, making transfers between different companies impractical. The cards involved must also belong to the same individual cardholder, as financial institutions generally do not allow the transfer of credit limits between different individuals, even if they are related.

Both the source and destination cards typically need to be active and in good standing. Some issuers may also require accounts to have been open for a minimum period, such as 60 days or three months, before a transfer is permitted. Financial institutions often impose internal policies regarding minimum or maximum transfer amounts, or a cap on the total credit limit a single card can hold. For instance, some cards may require a minimum remaining limit, such as $100, $500, or even $1,000, on the card from which credit is transferred.

Steps to Initiate a Transfer

Initiating a credit limit transfer generally requires direct communication with the credit card issuer. Cardholders can typically contact customer service via a phone call, utilize an online banking portal, or send a secure message through their account to request the transfer.

During the request, the bank will likely ask for specific information, including the account numbers of both the card from which credit will be moved and the card that will receive the credit, along with the desired transfer amount. The financial institution will then review the request based on its internal criteria, which may include the cardholder’s credit history, payment behavior, and overall credit exposure with the bank. Approval is not guaranteed and is granted at the issuer’s discretion. If approved, the new credit limits may reflect instantly or within a few hours to several days, with confirmation typically provided via notification or an updated online account display.

Important Factors Regarding Transfers

Transferring a credit limit can significantly alter a cardholder’s credit utilization ratio on both involved cards. Credit utilization, which is the percentage of available credit currently being used, is a substantial factor in credit scoring models, often accounting for approximately 30% of a FICO Score. When credit is moved from one card to another, the utilization on the source card might increase if it carries a balance, while the utilization on the destination card would decrease, assuming its balance remains constant.

Issuers often have specific rules regarding the minimum or maximum credit limits for individual cards. For example, a card from which credit is transferred might be required to retain a minimum limit, such as $100 or $500, preventing its limit from being reduced to zero. Conversely, a receiving card may have an absolute maximum credit limit it can accommodate. If a card’s limit is substantially reduced, or even brought to zero, through a transfer, the issuer might eventually close the account due to inactivity or a low limit. The closure of an older account can factually affect the average age of accounts on a credit report, a component that contributes to credit scores.

A credit limit transfer does not alter the interest rates, rewards programs, or other terms and conditions associated with either credit card. This process only moves available credit and does not involve the transfer of existing debt or balances. This distinction is important, as a credit limit transfer is fundamentally different from a balance transfer, which moves outstanding debt from one credit account to another.